Kane and Abel (Kane & Abel 1)

It came as no surprise to William to discover from Thaddeus Cohen the next day that the company that had dumped the original three million dollars worth of Interstate shares was one of those fronting for Abel Rosnovski, Guaranty Investment Corporation by name. A corporation spokesman had issued a plausible little press release explaining their reasons for selling, they had been concerned for the future of the Company after the Mexican government's responsible statement about Interstate Airways' inadequate servicing facilities.

'Responsible statement,' said William, outraged. 'The Mexican government hasn't made a responsible statement since they claimed Speedy Gonzales would win the one hundred metres at the Helsinki Olympics.'

The media made the most of Guaranty Investment's press release, and on Friday, the Federal Aviation Agency grounded the airline until it could conduct an in - depth investigation of its servicing facilities.

William was confident Interstate had nothing to fear from such an inspection, but the action proved disastrous for the short - term passenger bookings. No aviation company can afford to leave airtraft on the ground; they can only make money when they are in the air.

To compound William's problems, other major companies represented by Lester's were reconsidering future comrnitments. The press had been quick to point out that Lester's was Interstate Ainvays' underwriters.

Surprisingly, Inter - state's shares began to pick up again late Friday afternoon, and it did not take William long to guess why, a guess that was later confirmed'by Thaddeus Cohen : the buyer was Abel Rosnovski. He had sold his Interstate shares at the top and was now buying them back in small amounts while they were at the bottom. William shook his head in begrudging admiration. Rosnovski was making a small fortune for himself while bankrupting William both in reputation and financial terms.

William worked out that although the Baron Group must have risked over three million dollars, they might well end up making a huge profit.

Moreover, it was evident that Rosnovski was unconcerned about a temporary loss, which he could in any case use as a tax write - off; his only interest was in the total destruction of Lester's reputation.

When the board met on Monday, William explained the entire history of his clash with Rosnovski and offered his resignation. It was not accepted, nor was a vote taken, but there were murmurings, and William knew that if Rosnovski attacked again, his colleagues might not take the tolerant attitude a second time.

The board went on to consider whether they should continue the support for Interstate Airways. Tony Simmons convinced them that the F.A.A.'s enquiry would come out in the bank's favour, and that Interstate would in time recover all their money. Tony had to admit to William after the meeting that their decision could only help Rosnovski in the long run, but the bank had no choice if it wished to protect its reputation.

He proved right on both counts. When the S.E.C. finally published its findings, they declared Lester's 'reproachproof' although they had some stem words for Guaranty Investment Corporation. When the market started trading in Interstate shares that morning, William was surprised to find the stock rising steadily. It was soon back up to its original four and a half.

Thaddeus Cohen informed William that the principal purchaser was once again Abel Rosnovski.

'That's all I need at the moment,' said William. 'Not only does he make a large profit on the whole transaction, but now he can repeat the same exercise again whenever the time suits him.'

'In fact,' said Thaddeus Cohen, 'that is exactly what you do need.'

'Whatever do you mean, Thaddeus?' said William. 'I've never known you speak in riddles!

'Mr. Abel Rosnovski has made his first error in judgment, because he's breaking the law and now it's your turn to go after him. He probably doesn't even realise that what he was involved in was illegal, becaues he was doing it for all the wrong reasons!

'What are you talking about?' asked William.

'Simple,' said Thaddeus Cohen. 'Because of your obsesgion with Rosnovski - and his with you - it seems that ' both of you have overlooked the obvious: if you sell shares with the sole intention of causing the market to drop in order to pick up those same shares at the bottom and therefore be certain of a profit, you're breaking Rule I Ob - 5 of the Securities and Exchange Commission and you are comrnitting the crime of fraud. There's no doubt in my mind that making a quick profit was not Mr. Rosnovski's original intention; in fact, we know very well he only wanted to embarrass you personally. But who is going to believe Rosnovski if he gives as an explanation that he dumped the stock because he thought the company was unreliable, when he has bought all the same shares back when they reached rock bottom? Answer: nobody - and certainly not the S.E.C. IT have a full written report sent around to you by tomorrow, William, explaining the legal implications.'